Abra Expands with Acquisition of Valkyrie’s Tron and Zilliqa Trusts Following Regulatory Settlement
The post Abra Expands with Acquisition of Valkyrie’s Tron and Zilliqa Trusts Following Regulatory Settlement appeared on BitcoinEthereumNews.com.
The crypto exchange market is abuzz with Abra’s recent acquisition spree. Abra has reached a significant settlement with US state regulators, paving the way for further expansion. Insights into the firm’s purchase of Valkyrie Investments’ funds and its implications for the market. Abra expands its crypto offering by acquiring Valkyrie Investments’ funds after resolving regulatory issues, positioning itself for greater market reach. Abra Acquires Valkyrie Investments’ Funds: A Strategic Expansion Crypto exchange Abra has recently acquired several funds from Valkyrie Investments, a move indicative of its strategic growth ambitions within the digital asset market. The acquisition follows Abra’s settlement with 25 US state regulators, a resolution that allows the exchange to continue its operations with greater compliance and credibility. Details of the Acquisition and Strategic Implications According to Bloomberg, the deal includes Valkyrie’s Tron and Zilliqa trusts, which have attracted approximately $71 million in investments. Additionally, Abra has also acquired several yet-to-be-launched Valkyrie funds, positioning itself to broaden its range of offerings. Marissa Kim, Abra’s head of asset management, emphasized that this acquisition will enable Abra to enhance its portfolio of spot and decentralized finance (DeFi) products, thereby reaching a wider audience of investors. Regulatory Challenges and Settlement In recent times, Abra faced significant scrutiny from state regulators. In 2023, the State of Texas accused the exchange of misleading investors and alleged near insolvency related to two interest-bearing crypto products. Abra’s operations came under investigation by a coalition of states, including Arkansas, Connecticut, Georgia, Ohio, Oregon, Texas, Vermont, and Washington State. The investigation revealed that Abra was operating without the requisite licenses. Consequently, the firm agreed to a settlement which included paying fines totaling $250,000 per jurisdiction and compensating customers up to $82.1 million in crypto assets. Implications of the Regulatory Settlement As articulated by CSBS Chair Charlie Clark, state…
Filed under: News - @ July 14, 2024 8:20 pm